Much like your main residence, your rental property will need more touching up than others. Some years you may need to replace a few more items than you would hope and ultimately you may end up spending more on the property than you receive in rental income. Perhaps you’ve stopped renting your property for a short while to do some much-needed repairs and renewals on the property.

So, what should you do if you’ve made a loss with your rental property?

Firstly, it’s important that you still submit a self-assessment tax return for the relevant tax year as you’ve still received money from the business and it is important to declare these losses.

These losses can not be offset against other income in the same tax year, instead, the losses will be carried forward and offset against any future profits in your property business.

These losses can only be carried forward and offset against the ‘same property business’. HMRC would class two Buy-to-Let properties within the UK as the same property business, however if you have a foreign Buy-To-Let and a UK Buy-To-Let, these would be separate property businesses.

Losses can also only be used within a certain time frame, if you cease one property business (for example, selling the property, and then purchase a new BTL property a few years later, HMRC will view this as a new property business. HMRC generally view this period as being 3 years between the cessation of one business and the start of a new one.

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